WWE Stock Drops 45%
The business world continues to make me chuckle. A few notes/thoughts.1. WWE stock is $2 higher than it was at this time last year.
2. About a month or two ago the stock was at I believe an all time high. Stop acting like stock prices are set in stone.
3. Wrestlemania, the Wrestlemania DVD, and the Network going international are coming this year. Methinks that might spark the stocks a bit, seeing as how they do every year.
4. I don’t understand how the deal getting them $40 million more than they had last year can be seen as a bad thing. True it’s not as good as they expected, but under no circumstances can gaining $40 million be seen as a bad thing.
Are you going to buy any WWE stock, KB?
I got enough the first time.
So if getting a 40 million $ increase is a good thing. Doesn’t that mean Vince McMahon losing 350 million in one day is horrible?
Oh without a doubt. I wasn’t implying otherwise.
The comments ive read on some of the Wrestling Facebook pages is hilarious. Blaming the PG Era,CM Punk leaving,the Streak ending,HHH and Stephanie having more power,etc. With the usual answers bring back the Attitude Era or TV-14.
WWE has been in worse financial trouble in the early-mid 90s and when WCW was breathing down their necks.
I would have seen it coming. PPV buys have taken a big hit with them being gone from two major satellite providers and also being on the WWE Network. It’s gonna take a while before the Network’s numbers become a gain for them.
It might be a pretty big hit, but they have a massive upside coming.
any company which misses its expectations such as this will suffer a similar ‘crash’. the price baked into the stocks value is mostly speculation between quarterly earning releases – and this speculation is based on future forecasts – Vince was wayyyy off. Hence its reflected in the price.
Isn’t this more fun then talking about the wrestling?
As a stock geek who just watched a pretty boring Smackdown, you have no idea how much more fun it is. Zero sarcasm in that.
Did you read that financial company bought a stake in the company and wants to restructure the board of directors?
I did. Didn’t think much of it. The MOST they could buy of the top stock is 13% as Vince owns 87% of the Class A shares.
So it will hit the level it was at? Which was bad?
The year low (as in the previous 12 months, not since January) is something like $8.50. It’s currently at about $11.50. It’s a very bad day but to suggest this is the end of the world or a stake in WWE’s heart is absurd.
I don’t think people are saying getting 40 million more than last year is bad. They are saying Vince was confident he’d get twice as much, didn’t and had to settle for less.
Only in the stock market is getting $40 million a bad day.
That’s true, but it’s not like the rights fee went through the floor. This will settle down and people will see that WWE is in a much better position now than they were a year ago.
So why did the stocks crash?
Vince said the deal would be two or three times what it was last year and it was only up 25%. In other words, good day but too much speculation. It’ll go up again over the next few months before hitting the levels it’s been at for……oh ever.